Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

FDR's policies prolonged Depression by 7 years, UCLA economists calculate
UCLA Study ^ | 8/10/04 | By Meg Sullivan

Posted on 03/06/2010 6:02:55 AM PST by paltz

Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.

"Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics. "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."

In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933.

"President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services," said Cole, also a UCLA professor of economics. "So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies."

Using data collected in 1929 by the Conference Board and the Bureau of Labor Statistics, Cole and Ohanian were able to establish average wages and prices across a range of industries just prior to the Depression. By adjusting for annual increases in productivity, they were able to use the 1929 benchmark to figure out what prices and wages would have been during every year of the Depression had Roosevelt's policies not gone into effect. They then compared those figures with actual prices and wages as reflected in the Conference Board data.

In the three years following the implementation of Roosevelt's policies, wages in 11 key industries averaged 25 percent higher than they otherwise would have done, the economists calculate. But unemployment was also 25 percent higher than it should have been, given gains in productivity.

Meanwhile, prices across 19 industries averaged 23 percent above where they should have been, given the state of the economy. With goods and services that much harder for consumers to afford, demand stalled and the gross national product floundered at 27 percent below where it otherwise might have been.

"High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns," Ohanian said. "As we've seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market's self-correcting forces."

The policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.

Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943.

Roosevelt's role in lifting the nation out of the Great Depression has been so revered that Time magazine readers cited it in 1999 when naming him the 20th century's second-most influential figure.

"This is exciting and valuable research," said Robert E. Lucas Jr., the 1995 Nobel Laureate in economics, and the John Dewey Distinguished Service Professor of Economics at the University of Chicago. "The prevention and cure of depressions is a central mission of macroeconomics, and if we can't understand what happened in the 1930s, how can we be sure it won't happen again?"

NIRA's role in prolonging the Depression has not been more closely scrutinized because the Supreme Court declared the act unconstitutional within two years of its passage.

"Historians have assumed that the policies didn't have an impact because they were too short-lived, but the proof is in the pudding," Ohanian said. "We show that they really did artificially inflate wages and prices."

Even after being deemed unconstitutional, Roosevelt's anti-competition policies persisted — albeit under a different guise, the scholars found. Ohanian and Cole painstakingly documented the extent to which the Roosevelt administration looked the other way as industries once protected by NIRA continued to engage in price-fixing practices for four more years.

The number of antitrust cases brought by the Department of Justice fell from an average of 12.5 cases per year during the 1920s to an average of 6.5 cases per year from 1935 to 1938, the scholars found. Collusion had become so widespread that one Department of Interior official complained of receiving identical bids from a protected industry (steel) on 257 different occasions between mid-1935 and mid-1936. The bids were not only identical but also 50 percent higher than foreign steel prices. Without competition, wholesale prices remained inflated, averaging 14 percent higher than they would have been without the troublesome practices, the UCLA economists calculate.

NIRA's labor provisions, meanwhile, were strengthened in the National Relations Act, signed into law in 1935. As union membership doubled, so did labor's bargaining power, rising from 14 million strike days in 1936 to about 28 million in 1937. By 1939 wages in protected industries remained 24 percent to 33 percent above where they should have been, based on 1929 figures, Cole and Ohanian calculate. Unemployment persisted. By 1939 the U.S. unemployment rate was 17.2 percent, down somewhat from its 1933 peak of 24.9 percent but still remarkably high. By comparison, in May 2003, the unemployment rate of 6.1 percent was the highest in nine years.

Recovery came only after the Department of Justice dramatically stepped enforcement of antitrust cases nearly four-fold and organized labor suffered a string of setbacks, the economists found.

"The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes," Cole said. "Ironically, our work shows that the recovery would have been very rapid had the government not intervened."


TOPICS: Culture/Society
KEYWORDS: economics; fdr; greatdepression; presidents

1 posted on 03/06/2010 6:02:55 AM PST by paltz
[ Post Reply | Private Reply | View Replies]

To: paltz

Surely, this is satire. The idea that a state run University would publish is beyond comprehension.


2 posted on 03/06/2010 6:05:39 AM PST by raybbr
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

Old study but good to have around these days.


3 posted on 03/06/2010 6:06:07 AM PST by paltz
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

I have read, in the past, that govt policy turned a recession into the depression and made it last much longer than it would have if left alone.
However, it did give the federal govt the opportunity to increase their power over our lives and they seized that power with a vengeance.


4 posted on 03/06/2010 6:06:23 AM PST by Scotsman will be Free (11C - Indirect fire, infantry - High angle hell - We will bring you, FIRE)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz; informavoracious; larose; RJR_fan; Prospero; Conservative Vermont Vet; ...
+

Freep-mail me to get on or off my pro-life and Catholic List:

Add me / Remove me

Please ping me to note-worthy Pro-Life or Catholic threads, or other threads of general interest.

5 posted on 03/06/2010 6:07:10 AM PST by narses ("lex orandi, lex credendi, lex vivendi")
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz
FDR's policies prolonged Depression by 7 years, UCLA economists calculate

Just imagine the state of our sovereignty for decades after if he hadn't saved us from total collapse! /MS

That would be the response of a Fascist.

6 posted on 03/06/2010 6:09:18 AM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

for later


7 posted on 03/06/2010 6:13:46 AM PST by Walkingfeather
[ Post Reply | Private Reply | To 1 | View Replies]

To: Scotsman will be Free
I have read, in the past, that govt policy turned a recession into the depression and made it last much longer than it would have if left alone. However, it did give the federal govt the opportunity to increase their power over our lives and they seized that power with a vengeance.

That's it in a nutshell!

Excellent post SWBE!

Photobucket

8 posted on 03/06/2010 6:14:05 AM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 4 | View Replies]

To: paltz

Zero is trying to do in one year what took Roosevelt 6 years. Seeing Zero push ObamaCare, Crap and Tax, card check etc is an exact replay of what FDR did before 1939, Social Security, NRA, Wagner, etc. and of course the economy is suffering.


9 posted on 03/06/2010 6:15:36 AM PST by C19fan
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

I remember reading a study that if they had allowed natural market forces to intervene, the US economy would probably have been on a steady recovery by 1936-1937 anyway.


10 posted on 03/06/2010 6:16:57 AM PST by RayChuang88 (FairTax: America's economic cure)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz
For a great treatise of the Great Depression read The Forgotten Man by Amity Shlaes.
11 posted on 03/06/2010 6:22:43 AM PST by windsorknot (o o)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

Bump


12 posted on 03/06/2010 6:23:03 AM PST by Ditto (Directions for Clean Government: If they are in, vote them out. Rinse and repeat.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

And obambi’s will DESTROY IT in 4.

OBAMANOMICS—TRICKLE DOWN DESTRUCTION of the economy
Bambi doesn’t keep his promises...so buyer beware!

SET THEIR LOCAL AND DC LINES ON FIRE!

PLEASE ASK THEM TO REPEAL THE BIG NEW FEES in TRICARE for Life, the retired Military over 65 secondary health ins. which they passed in a DOD bill. They promised our Military these benefits, and our Military have earned them.

Sen Scott Brown’s number is 202-224-4543
Capitol Hill switchboard is 202-224-3121

Lots of local demwit phone numbers on this thread
http://www.freerepublic.com/focus/news/2408217/posts

Rename, repackage, rewrite it a tad smaller, and sell another pig in a poke. NO COLAs for granny, retired Military or retired fed employees. BIG NEW fees for Tricare for Life retired over 65 Military’s secondary health ins. (DOD bill already passed, delayed but goes into effect 2011 NEEDS TO BE REPEALED!

OBAMA’s WAR ON SENIORS http://www.freerepublic.com/focus/f-news/2433867/posts/

New Dem mantra: Woof, woof eat dog food granny....ala let them eat cake.

Obama says slight fix will extend Social Security, http://townhall.com/news/us/2010/02/19/obama_says_slight_fix_will_extend_social_security

Health Care Rationing for Seniors Another Problem in New Obama Plan http://www.lifenews.com/bio3058.html

Medicare tax may apply to investment income (ObamaCare tax hike)
http://www.freerepublic.com/focus/f-news/2460988/posts

Obama: No reduced Medicare benefits in health care reform
http://www.cnn.com/2009/POLITICS/07/28/obama.health.care/index.html

Will healthcare reform mean cuts in Medicare for seniors?
http://www.csmonitor.com/USA/Politics/2009/1017/will-healthcare-reform-mean-cuts-in-medicare-for-seniors

Health Reform’s Hidden Victims Young people and seniors would pay a high price for ObamaCare.
http://online.wsj.com/article/SB10001424052970203517304574306303720472842.html

SOCIALIZED MED THREAD http://www.freerepublic.com/focus/news/2464538/posts

MILITARY & Retired MILITARY
Veterans’ G.I. Bill benefits MIA
http://www.freerepublic.com/focus/f-news/2464680/posts
TRI CARE FOR LIFE This from a google search:

http://economicspolitics.blogspot.com/2009/05/tricare-for-life-is-obama-trying-to.html

This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollee’s cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf

Bill Would Restrict Veterans’ Health Care Options 11/06/09
Buyer and McKeon Offer Amendments to Protect Veterans and TRICARE Beneficiaries

Congress plans to block Tricare fee increases
http://www.armytimes.com/news/2009/10/military_tricarefees_blocked_100709w
http://www.navytimes.com/news/2009/10/military_tricarefees_blocked_100709w/

By Rick Maze - Staff writer, Oct 7, 2009

Tricare fee increases imposed last week by the Defense Department will be repealed by a provision of the compromise 2010 defense authorization bill unveiled Wednesday by House and Senate negotiators.

The fee increases were announced on Sept. 30 and took effect on Oct. 1, but the defense bill, HR 2647, includes a provision barring any fee increases until the start of fiscal 2011.

Retired Army Maj. Gen. Bill Matz, president of the National Association for Uniformed Services, said the announcement of fee increases was shocking considering that the Obama administration promised earlier this year to hold off on any new fee Tricare fee increases until fiscal 2011.

“President Obama and DoD assured NAUS and the entire military family earlier this year that there would rightly be no increases in any Tricare fees” in fiscal 2010, Matz said. “We took them at their word, and I can’t believe that a co-pay increase like this was allowed to go forward,” he added.
Post Reply | Private Reply | To 1 | View Replies
#
Health Reform 3.0 - Lipstick On A Pig
Friday, March 05, 2010 3:05:55 PM · 5 of 5
GailA to raptor22

OBAMANOMICS—TRICKLE DOWN DESTRUCTION of the economy
Bambi doesn’t keep his promises...so buyer beware!

SET THEIR LOCAL AND DC LINES ON FIRE!

PLEASE ASK THEM TO REPEAL THE BIG NEW FEES in TRICARE for Life, the retired Military over 65 secondary health ins. which they passed in a DOD bill. They promised our Military these benefits, and our Military have earned them.

Sen Scott Brown’s number is 202-224-4543
Capitol Hill switchboard is 202-224-3121

Lots of local demwit phone numbers on this thread
http://www.freerepublic.com/focus/news/2408217/posts

Rename, repackage, rewrite it a tad smaller, and sell another pig in a poke. NO COLAs for granny, retired Military or retired fed employees. BIG NEW fees for Tricare for Life retired over 65 Military’s secondary health ins. (DOD bill already passed, delayed but goes into effect 2011 NEEDS TO BE REPEALED!

OBAMA’s WAR ON SENIORS http://www.freerepublic.com/focus/f-news/2433867/posts/

New Dem mantra: Woof, woof eat dog food granny....ala let them eat cake.

Obama says slight fix will extend Social Security, http://townhall.com/news/us/2010/02/19/obama_says_slight_fix_will_extend_social_security

Health Care Rationing for Seniors Another Problem in New Obama Plan http://www.lifenews.com/bio3058.html

Medicare tax may apply to investment income (ObamaCare tax hike)
http://www.freerepublic.com/focus/f-news/2460988/posts

Obama: No reduced Medicare benefits in health care reform
http://www.cnn.com/2009/POLITICS/07/28/obama.health.care/index.html

Will healthcare reform mean cuts in Medicare for seniors?
http://www.csmonitor.com/USA/Politics/2009/1017/will-healthcare-reform-mean-cuts-in-medicare-for-seniors

Health Reform’s Hidden Victims Young people and seniors would pay a high price for ObamaCare.
http://online.wsj.com/article/SB10001424052970203517304574306303720472842.html

SOCIALIZED MED THREAD http://www.freerepublic.com/focus/news/2464538/posts

MILITARY & Retired MILITARY
Veterans’ G.I. Bill benefits MIA
http://www.freerepublic.com/focus/f-news/2464680/posts
TRI CARE FOR LIFE This from a google search:

http://economicspolitics.blogspot.com/2009/05/tricare-for-life-is-obama-trying-to.html

This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollee’s cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf

Bill Would Restrict Veterans’ Health Care Options 11/06/09
Buyer and McKeon Offer Amendments to Protect Veterans and TRICARE Beneficiaries

Congress plans to block Tricare fee increases
http://www.armytimes.com/news/2009/10/military_tricarefees_blocked_100709w
http://www.navytimes.com/news/2009/10/military_tricarefees_blocked_100709w/

By Rick Maze - Staff writer, Oct 7, 2009

Tricare fee increases imposed last week by the Defense Department will be repealed by a provision of the compromise 2010 defense authorization bill unveiled Wednesday by House and Senate negotiators.

The fee increases were announced on Sept. 30 and took effect on Oct. 1, but the defense bill, HR 2647, includes a provision barring any fee increases until the start of fiscal 2011.

Retired Army Maj. Gen. Bill Matz, president of the National Association for Uniformed Services, said the announcement of fee increases was shocking considering that the Obama administration promised earlier this year to hold off on any new fee Tricare fee increases until fiscal 2011.

“President Obama and DoD assured NAUS and the entire military family earlier this year that there would rightly be no increases in any Tricare fees” in fiscal 2010, Matz said. “We took them at their word, and I can’t believe that a co-pay increase like this was allowed to go forward,” he added.


13 posted on 03/06/2010 6:23:23 AM PST by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, disabled,seniors & retired Military)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz
"We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."

Hmmmm... How would this be relevant to our situation today?

14 posted on 03/06/2010 6:25:04 AM PST by St_Thomas_Aquinas
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

It’s truly amazing that, 60 years later, the myth of FDR as having saved the country from the Depression still lingers on. Many economists at the time warned that his policies were prolonging it, but America had become so enamored of communism, fascism and “scientific” planning that they were ignored as obsolete cranks.

If you’re at all interested in the topic, then, by all means, read “The Forgotten Man” by Amity Shlaes. It’s a fascinating read about that era and you don’t need to be an economist to understand it. It will also become stunningly obvious to you how the Obama administration consciously set about to imitate FDR’s every move.


15 posted on 03/06/2010 6:26:12 AM PST by BfloGuy (It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect . . .)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

So, Glenn Beck was right???


16 posted on 03/06/2010 6:27:11 AM PST by Edward Watson
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

Just read “The Forgotten Man” by Amity Schlaes! The book is amazing and a lot of scary similarities to Obama and his team.


17 posted on 03/06/2010 6:29:16 AM PST by Solson (magnae clunes mihi placent, nec possum de hac re mentiri.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

http://www.rooseveltmyth.com


18 posted on 03/06/2010 6:34:45 AM PST by RaceBannon (RON PAUL: THE PARTY OF TRUTHERS AND TRAITORS!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Scotsman will be Free
However, it did give the federal govt the opportunity to increase their power over our lives and they seized that power with a vengeance.

Never let a crisis go to waste? Sounds mighty familiar......

19 posted on 03/06/2010 6:35:12 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: paltz

http://www.rooseveltmyth.com/book/hbzfrm.htm


20 posted on 03/06/2010 6:35:45 AM PST by RaceBannon (RON PAUL: THE PARTY OF TRUTHERS AND TRAITORS!!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: raybbr

Really good satire has a number of elements, and even logical conclusions, close enough to the truth, that in some light, it is indistinguishable from actuality.

Perhaps some of the conclusions were overdrawn, but considering that the US industrial base did not get moving again until we began ramping up for war production, first as major supplier to Great Britain, then as Lend-Lease to the Soviet Union (for which we were never reimbursed, by the way), the effects of the Great Depression would have continued for far longer than the 1940’s. Only when most of the “New Deal” was dismantled starting in 1946 through the 1950’s, did the nation blossom again. The strictures of the New Deal were highly suited for a managed economy in wartime, but they are useless in a nation at relative peace.


21 posted on 03/06/2010 6:40:18 AM PST by alloysteel (....the Kennedys can be regarded as dysfunctional. Even in death.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: RaceBannon

http://fee.org/articles/great-depression/


22 posted on 03/06/2010 6:40:57 AM PST by RaceBannon (RON PAUL: THE PARTY OF TRUTHERS AND TRAITORS!!!)
[ Post Reply | Private Reply | To 18 | View Replies]

To: windsorknot

http://fee.org/articles/great-depression/


23 posted on 03/06/2010 6:43:42 AM PST by RaceBannon (RON PAUL: THE PARTY OF TRUTHERS AND TRAITORS!!!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: RaceBannon
You night also want to read: FDR's Folly, Jim Powell, Rethinking the Great Depression, and New Deal Or Raw Deal, Gene Smiley. Good reads.
24 posted on 03/06/2010 6:58:07 AM PST by Little Bill (Carol Che-Porter is a MOONBAT.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: paltz

The big recession in 1937 caused by the newly formed Federal Open Market Committee (the Federal Reserve) didn’t help either.


25 posted on 03/06/2010 7:01:07 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

Roosevelt was a Dictator in the making. The fact that Presidential term limits were enacted almost immediately after his death was proof that the American public was afraid of where he was taking this country....


26 posted on 03/06/2010 7:11:32 AM PST by Don Corleone ("Oil the gun..eat the cannolis. Take it to the Mattress.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz
Please read "The Forgotten Man" by Amity Shlaes. Every time FDR got a chance to make a decision regarding the economy, he guessed wrong and then doubled down. Worse, because of the size of our economy, FDR kept much of the world in poverty.

It wasn't until Jimmy Carter that we found a bigger fool to sit in the White House.

27 posted on 03/06/2010 7:16:50 AM PST by muir_redwoods (Obama: Chauncey Gardiner without the homburg)
[ Post Reply | Private Reply | To 1 | View Replies]

To: raybbr

Finally the truth comes out.

FDR’s policies turned what would of been a deep recession into the depression.

And if he isn’t stoppped Obama might just do the same.


28 posted on 03/06/2010 7:21:28 AM PST by TexasFreeper2009 (Obama = Epic Fail)
[ Post Reply | Private Reply | To 2 | View Replies]

To: alloysteel
FDR needed very badly the US "all the way" entry into WWII not just to increase industrial production, but also as an enormous jobs program.

After WWII, the US was a long way down the path of military commitments and acting as the arms supplier to the world, largely to counter the "Red Menace" - that "military-industrial complex" which Ike cautioned against persists.

29 posted on 03/06/2010 7:35:41 AM PST by jamaksin
[ Post Reply | Private Reply | To 21 | View Replies]

To: paltz

Based on the FDR era recovery period was delayed 7 years because of his interference, the current recovery period under Obama’s interference may be delayed forever. What a mess!!!!!


30 posted on 03/06/2010 8:01:22 AM PST by mulligan
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

I have always found Democrat support for labor cartels odd. Democrats now are strident against collusion among businesses except for government influence that forces higher prices. Democrats openly support labor cartels somehow justifying labor cartels as fair even when cartels increase taxes and reduce government services provided. One might conclude that Democrats would favor competitive bidding in government services to maximize the amount of services provided.

In my mind, disdain for property rights is the overriding mindset of Democrats. The more wealth and income, the greater the disrespect by Democrats for property rights. Democrats spend every waking moment concocking schemes to violate property rights and destroying incentives to produce. Democrat schemes are essentially transferring property rights from producers who bear risks to workers bearing no risks. Democrats feel the natural order is to force risk bearing producers to transfer property rights to favored worker groups. Thus we see incredible income by relatively low skilled workers (bus drivers, auto workers, dock workers, and government workers). Democrats then transfer immutable property rights through ridiculous claims to retirement compensation. These groups have strong contractual rights to force risk bearing producers and taxpayers to pay for their property rights acquired through legalized theft. Who needs the mob for enforcement when the Democrats enforce through the state?


31 posted on 03/06/2010 8:11:04 AM PST by businessprofessor
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

Notice the passive voice. Thought by whom? Answer: Keynesians and other statists, which includes essentially all journalists, and govermnent-sycophant "economists."

32 posted on 03/06/2010 8:43:01 AM PST by Erasmus ("Ah, sweet Albion. My perfidious, perfidious Albion!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: EGPWS

Works Progress Administration (WPA)— AKA... “We Piddle Around”.

So said my grandma who raised seven kids during the Depression.


33 posted on 03/06/2010 12:04:52 PM PST by Ruy Dias de Bivar
[ Post Reply | Private Reply | To 8 | View Replies]

To: Ruy Dias de Bivar

“Wet Pants Annie” is what I grew up with.

WPA was in the concrete at the end of all sidewalks in my home town.


34 posted on 03/06/2010 12:08:16 PM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 33 | View Replies]

To: EGPWS

***WPA was in the concrete at the end of all sidewalks in my home town.**

I remember when almost all sidewalks had that logo on them. There is still a WPA Road near here.


35 posted on 03/06/2010 12:10:09 PM PST by Ruy Dias de Bivar
[ Post Reply | Private Reply | To 34 | View Replies]

To: paltz

Not news to me. My parents (and grandparents) hated FDR. When I was growing up I remember hearing them talking about how FDR’s policies made things worse not better.


36 posted on 03/06/2010 12:10:25 PM PST by Fiddlstix (Warning! This Is A Subliminal Tagline! Read it at your own risk!(Presented by TagLines R US))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ruy Dias de Bivar
I remember when almost all sidewalks had that logo on them. There is still a WPA Road near here.

Cost a lot of money just to keep "voters" busy and content during bad times.

It's part of the reason for the longevity of the great depression.

37 posted on 03/06/2010 12:13:42 PM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 35 | View Replies]

To: windsorknot
For a great treatise of the Great Depression read The Forgotten Man by Amity Shlaes.

Haven't read any of her books however she sure has impressed me via interviews that I have listened to and watched.

38 posted on 03/06/2010 12:17:30 PM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 11 | View Replies]

To: paltz

“We found that a relapse isn’t likely unless lawmakers gum up a recovery with ill-conceived stimulus policies.”

“Ironically, our work shows that the recovery would have been very rapid had the government not intervened.”

Looks like it’s going to be a long cold recovery.


39 posted on 03/06/2010 12:23:32 PM PST by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ruy Dias de Bivar
As did my Grandpa, he hated FRD as the Destroyer of the Constitution, First Dictator of The United States, and as an aside in later life, a communist.



40 posted on 03/06/2010 12:40:23 PM PST by Little Bill (Carol Che-Porter is a MOONBAT.)
[ Post Reply | Private Reply | To 33 | View Replies]

To: Ruy Dias de Bivar; EGPWS

How current!

The son of friends has a small concrete contracting business. He has survived because the stimulus (American Recovery Act/ARA) had money available to all municipalities to repair and to add sidewalks.He pretty much cornered the entire market, locally, by honest, but low, bids to the little towns and villages in our area.

He is in his thirties and hates zerO, the donks, liberals and progressives. He has worked all his life, starting at age 12 on and off the farm and sees taking these contracts as getting back some of the taxes he and his sibling and parents have paid.


41 posted on 03/06/2010 1:39:30 PM PST by reformedliberal
[ Post Reply | Private Reply | To 35 | View Replies]

To: reformedliberal
He has worked all his life, starting at age 12 on and off the farm and sees taking these contracts as getting back some of the taxes he and his sibling and parents have paid.

Now if it stayed his money in the first place...

Government always has a way to bring the greed out in us all.

42 posted on 03/06/2010 1:48:30 PM PST by EGPWS (Trust in God, question everyone else)
[ Post Reply | Private Reply | To 41 | View Replies]

To: BfloGuy

Obama is striving to finish what Roosevelt started.


43 posted on 03/06/2010 1:56:32 PM PST by RoadTest (Wealth isn't obscene. Poverty is obscene. - Thomas (man of few but dynamite words) Sowell)
[ Post Reply | Private Reply | To 15 | View Replies]

To: RoadTest

“labor cartels”

Yep, pretty much. The last thing a liberal wants is someone who’s got more talent doing their job for less.


44 posted on 03/06/2010 4:29:05 PM PST by BenKenobi (And into this Ring he poured his cruelty, his malice and his will to dominate all life.)
[ Post Reply | Private Reply | To 43 | View Replies]

To: BenKenobi

As a historian, I have always wondered, if the New Deal worked why did it take 13 years???


45 posted on 03/06/2010 7:26:34 PM PST by gman992
[ Post Reply | Private Reply | To 44 | View Replies]

To: paltz
a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

Just the other day I was reading an essay by a man named Likoudis. He said one of the greatest critics of the Roosevelt administration and its corruption was Fr. Coughlin, whose newspaper Social Justice often provided better reportage on New Deal shenanigans than Time Magazine.

Coughlin's newspaper, which was also skeptical of war, was suppressed during World War II, and he has been tarred as an anti-Semite (with some justification). However, FDR's lofty reputation is a side-effect of wartime censorship.

46 posted on 03/09/2010 10:33:55 AM PST by Dumb_Ox (http://twitter.com/kevinjjones)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson